Great Opportunity For Strategic Buyer
Access to the UK and EU Market
This 9-year-old UK-based Contract Research Organization (CRO) provides Analytical Services to the Pharmaceutical Industry for Drug Development and, to some extent, to the Food, Agricultural, Chemical, Veterinary, and Forensic Industries.
The Laboratory specializes in feasibility studies, method development, and validation for essential pharmaceutical evaluations, such as toxicology, pharmacokinetics, bioavailability, and drug interactions.
Its laboratory offerings include analytical services in biomarkers, chiral chromatography, LC-MS/MS, method development, and nGxP bioanalysis. It also offers bioanalysis consultancy, including method development and CRO selection, and delivers regulated training with classroom and practical sessions.
While laboratory work is the bulk of its business, it also provides consulting services, including advising and optimizing Bioanalytical methods, sourcing CROs for various types of work, managing clinical trials, auditing sites, and much more. It also provides both classroom and practical training in Bioanalysis.
Opportunity Highlights
- Well-established Market Presence: With a broad customer base, a strong brand image, and an excellent reputation, this lab offers a strategic buyer a UK presence and proximity to the EU market.
- Fully-equipped Infrastructure: Modern facility with advanced mass spectrometry and a well-organized layout for lab work, training, and administration. With state-of-the-art technology and equipment, prospective buyers can easily expand operations with minimal additional investment.
- Agile Response to Market Conditions: The laboratory grew from consultancy services to a full nGLP CRO lab in five years. This highlights the laboratory’s flexibility to swiftly adapt to market changes and customer needs, enhancing its competitive advantage.
- Diversified Revenue Streams: The Laboratory’s diverse revenue streams, including analytical services, consultancy, and bioanalysis training, expand its market reach and enhance its stability. By addressing varied client needs and industry demands, these streams drive growth and long-term success.
- Solid Growth Potential: The anticipated acquisition of the Good Laboratory Practice (GLP) license within six months can unlock access to regulated market clients and increase the Laboratory’s revenue significantly. A strategy buyer can further leverage this to take this CRO to the next level.
Financials
The Lab has grown significantly over the past nine years, leveraging decades of combined experience of its staff. It has formed a reputation for quality work done on time.
The owners feel that a larger strategic buyer can take this Laboratory to the next level by providing more resources, industry contacts, and better marketing.
In fiscal 2024, its revenue grew by 62% to £895,000 (US $1.18M), over the past year and its EBITDA grew by 139% to £359,000 (US $474,000).
The Lab plans to get a GLP License soon, which will help it get more projects in the regulated market. With the help of the strategic buyer, it can go far. The owners can stay on to help the buyer grow the business.
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